Intuit: On-Demand Workers Will More Than Double By 2020

Intuitprojects the population of on-demand workers will be more than twice as large by 2020 in new research--despite controversy about how to classify on-demand workers on Uber and other platforms. Currently, Intuit counts 3.2 million people who work regularly in the on-demand economy, but in five years, their numbers should hit 7.6 million, according to the findings.

Intuit announced the data as it embarks today on an extensive study with Emergent Research to understand the demographics, motivations and challenges of on-demand workers. It is collaborating with platforms including Upwork, Fiverr, OnForce, Visually, Wonolo, HourlyNerd, and Work Market on the study, as well as MBO Partners, which, like Emergent Research, studies the free-agent economy. Intuit, based in Mountain View, Calif., offers financial management software and solutions aimed at small business owners.

The growth in on-demand workers comes at a time when contingent work, from part-time jobs to contract gigs, is skyrocketing.

"We think this has been trending the last few decades," Alex Chriss, vice president and general manager of Self-Employed Solutions at Intuit, said in an interview yesterday. In 1989, 6% of workers had contingent positions, he says. "We believe it could be 40% of the workforce by 2020." He personally believes that number could go as high as 50%.

There is debate about how to define contingent workers, but Intuit's figures are similar to those in recent U.S., government research, which found that 40% of the workforce was made up of those who have part-time, temp and contract jobs or are self-employed.

One goal of Intuit's upcoming study on workers in the on-demand sector is to gather accurate data to inform policy decisions. As more of the population has begun to earn a living outside of traditional jobs, there has been growing concern about how to provide the support system that once came from employers. "A lot of our infrastructure hasn't kept up with it," said Chriss.

That has prompted pressure in the court system to put the workers on the payrolls of on-demand platforms such as Uber by trying to get them classified as W-2 employees--and significant push-back from some of the platforms. It has also raised questions about whether our labor classification system, designed for industrial-era jobs, is out of date.

"A lot of classification debates are black or white: Should they be an employee or an independent contractor," Chriss said. "We keep trying to fit these folks into our traditional buckets. I don’t think they fit into those anymore."